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WASHINGTON (AP) — Vice President JD Vance announced Wednesday that the Trump administration would “temporarily halt” some Medicaid funding to the state of Minnesota over fraud concernsas part of what he described as an aggressive crackdown on misuse of public funds.

Vance, who made the announcement with Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said the administration was taking the action “in order to ensure that the state of Minnesota takes its obligations seriously to be good stewards of the American people’s tax money.”

Oz, who referred to people committing fraud as “self-serving scoundrels,” said the federal government would hold off on paying $259.5 million to Minnesota in funding for Medicaid, the health care safety net for low-income Americans.

“This is not a problem with the people of Minnesota, it’s a problem with the leadership of Minnesota and other states who do not take Medicaid preservation seriously,” Oz said.

Wednesday’s move is part of a larger Trump administration effort to spotlight fraud around the country. That effort comes after allegations of fraud involving day care centers run by Somali residents in Minneapolis prompted a massive immigration crackdown in the Midwestern city, resulting in widespread protests. President Donald Trump, in his State of the Union address on Tuesday, announced Vance would spearhead a national “war on fraud.”

Trump also recently nominated Colin McDonald to serve as the first assistant attorney general in charge of a Justice Department division dedicated to rooting out fraud.

Minnesota pushes back

Oz said the administration was simultaneously notifying Minnesota’s Democratic Gov. Tim Walz as he was making the announcement publicly.

“We will give them the money, but we’re going to hold it and only release it after they propose and act on a comprehensive corrective action plan to solve the problem,” Oz said.

He said Walz would have 60 days to respond and advised health care providers and Medicaid beneficiaries who were concerned to contact Walz’s office.

Walz, former Vice President Kamala Harris’ 2024 running mate, said in a pair of social media posts that the administration’s move had nothing to do with fraud.

“This is a campaign of retribution. Trump is weaponizing the entirety of the federal government to punish blue states like Minnesota,” Walz said. “These cuts will be devastating for veterans, families with young kids, folks with disabilities, and working people across our state.”

Minnesota Attorney General Keith Ellison said in a statement that his team has secured over 300 Medicaid fraud convictions since he took office in 2019. And he noted that he called on the Legislature earlier Wednesday to give him more staff and new legal tools to combat Medicaid fraud.

“Courts have repeatedly found that their pattern of cutting first and asking questions later is illegal, and if the federal government is unlawfully withholding money meant for the 1.2 million low-income Minnesotans on Medicaid, we will see them in court,” Ellison said.

Oz said the Centers for Medicare and Medicaid Services were also taking action to crack down on fraud in Medicare, the health care system relied upon by millions of older adults.

He said CMS for six months would block any new Medicare enrollments for suppliers of durable medical equipment, prosthetics, orthotics or other supplies used to treat chronic conditions or assist in injury recovery.

The Office of the Inspector General for the U.S. Department of Health and Human Services found last year that Medicare improperly paid suppliers nearly $23 million for durable medical equipment from 2018 through 2024. But it found that most of that was before January 2020, when changes to the system were implemented.

Oz also announced a new crowdsourcing effort he said would help “crush fraud” by soliciting Americans’ tips and suggestions.

“All of us are smarter than any one of us,” he said.

In a news release accompanying the announcement, CMS said the funding being paused in Minnesota included some $244 million in unsupported or potentially fraudulent Medicaid claims and about $15 million in claims involving “individuals lacking a satisfactory immigration status.”

Immigrants who are not living in the U.S. legally, as well as some lawfully present immigrants, are not allowed to enroll in the Medicaid program that provides nearly-free coverage for health services.

CMS said in the release that if Minnesota fails to satisfy its requirements, it may defer up to $1 billion in federal funds to the state over the next year. CMS spokesperson Catherine Howden said the agency’s review of potential fraud cases would include sampling claims to see if they comply with federal requirements, and potentially requesting more information about specific claims.

Akeiisa Coleman, the senior program officer for Medicaid at the Commonwealth Fund, said CMS was taking a “highly unusual step” in deferring funding. She said if the state doesn’t have enough funds available, it may have to halt payments to providers, which could affect care.

Democratic-run states face cutoffs

The administration has threatened to cut off funding for various programs for some Democratic-run states over fraud concerns over the last few months.

One judge blocked those actions and required that payments flowing to Minnesota and four other states — California, Colorado, Illinois and New York — for a variety of social service programs. The government had said that there was “reason to believe” that those states were granting benefits to people in the country illegally. It did not initially explain where that information came from, but a government lawyer told the judge it was largely in reaction to news reports about possible fraud.

Another judge said she would not let it cut off funding for administrative costs for 22 states that have refused to hand over information about applicants and recipients of food aid through the Supplemental Nutritional Assistance Program.

The latest action was prompted in part by a series of fraud cases, including a nonprofit called Feeding Our Future accused of stealing pandemic aid meant for school meals. Prosecutors have put the losses from that case at $300 million.

Since then, Trump has targeted the Somali diaspora in Minnesota with immigration enforcement actions and has made a series of disparaging comments about the community. During his State of the Union address on Tuesday, Trump said “pirates” have “ransacked Minnesota.”

Federal agencies have also been enlisted to assist in targeting fraud in Minnesota.

Last December, the U.S. Treasury Department issued an order requiring money wire services that people use to send money to Somalia to submit additional verification to the Treasury.

The Center for Medicare and Medicaid Services told Minnesota in January that it intended to freeze parts of payments for some Medicaid programs that were deemed high-risk. The state said that those cuts would add up to more than $2 billion annually if they lasted and made an administrative appeal.

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Associated Press writers Geoff Mulvihill in Philadelphia, Steve Karnowski in Minneapolis and Fatima Hussein in Washington contributed to this report.

Turning Point Action, the political organization founded by the late conservative activist Charlie Kirk, will bring together U.S. and international politicians at a conference next week — including members of far-right parties across the globe.

Markus Frohnmaier, a political leader from the far-right German party Alternative für Deutschland (AfD), is among the announced guests at the Alliance of Sovereign Nations, scheduled for March 4 to 6 in Washington. Other guests include House Speaker Mike Johnson (R-La.); Rep. Anna Paulina Luna (R-Fla.); George Simion, founder of the far-right Alliance for the Union of Romanians; and European Parliament members Barbara Bonte of the far-right Vlaams Belang party and Petra Steger of Austria’s right-wing Freiheitliche Partei (FPÖ).

In an interview, Turning Point Action COO Tyler Bowyer said the event was “spurred” by Luna and that more attendees will be announced soon. He referred to the parties that will be represented, including AfD, as “center-right.”

Germany’s Federal Office for the Protection of the Constitution in May 2025 classified parts of the AfD as “proven right-wing extremist” for being an alleged threat to the country’s democratic order and agitating against migrants. But the party filed a legal challenge, and a court made a temporary ruling this week suspending the designation until the case is fully decided.

“There’s a lot of people from a lot of different countries that are representing center-right politics across the world. So it’s important to hear everyone,” Bowyer said. “There’s a lot of things going wrong in Germany right now. It’s important to hear everybody out.”

Spokespeople for Johnson and Luna declined to comment. In a social media post Wednesday morning, Luna wrote, “Next week members of government from around the world will be coming together at the Alliance of Sovereign Nations! @SpeakerJohnson will be there!”

The conference’s mission statement declares “every country has a rightful obligation to defend its sovereignty and put their interests first,” according to its website. The conference is also sponsored by Republicans for National Renewal.

The AfD party has gained increasing support in Trump’s Washington. Secretary of State Marco Rubio and Vice President JD Vance have condemned efforts to label the party as extremist. Frohnmaier has recently traveled several times to Washington for meetings with Luna and other Republican representatives as well as State Department officials. State Department officials have accused the German government of suppressing freedom of opinion, an accusation the German government strongly rejects. Sarah Rogers, undersecretary of State for diplomacy, this week called a criminal investigation by German police of a critical post directed at German Chancellor Friedrich Merz “a case of lèse-majesté.”

In October, Luna posted on X that she met with Anna Rathert, a member of Germany’s federal parliament who’s part of the AfD’s parliamentary group and member of the foreign affairs committee in Bundestag. She and other members of Congress also met with Kay Gottschalk and other members of the AfD in Washington in December. She praised the party as “actually working to strengthen ties with the United States and restore a healthy relationship between our governments” and accused Germany’s chancellor of “trashing our president and censoring German citizens.”

In an interview with Welt last November, Luna said she was planning the conference as an event that “will counter Davos” and be more focused on “the sovereignty of nations.”

In Germany, AfD currently polls in second place, only a few percentage points behind the governing Christian Democrats of Merz.

Last December, Frohnmaier was awarded a prize at the New York Young Republican Club gala for AfD’s “courageous work undertaken in the particularly suppressive and hostile political environment of Germany,” as the invitation stated.

Only weeks earlier, the New York State Young Republicans chapter was disbanded after POLITICO reported on a group chat in which leaders praised Adolf Hitler and joked about the Holocaust.